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Bitcoin price prediction: BTC/USD vulnerable to short-term losses - Confluence Detector

  • BTC/USD bears embarked a technical correction. 
  • Risks are skewed to the downside for BTC/USD. 

Bitcoin (BTC) is hovering around $5,200 after a short-lived drop to the intraday low of  $5,145. The cryptocurrency market has been rangebound with a bearish bias since the beginning of Monday amid the lack of fresh bullish catalysts.  

In a separate development, CME reported a sudden resurgence of Bitcoin futures trading volumes. The number of contracts hit an all-time high at 22,542 on April 4 amid strong price growth. This is an equivalent of 112,710 Bitcoin with a notional value of $546 million. 

Bitcoin confluence levels 

There are quite a number of technical levels clustered both above and below above the current price; however, the true resistance that separates us from further growth comes at $5,350, while a critical support lies as low as $4,800. 

Resistance levels

  • A host of SMA levels above the current price, coupled with 61.8% Fibo retracement daily limit the immediate recovery.
  • The next resistance is seen above $5,300. It is created by the highest level of the previous 4-hour period, 38.2% Fibo retracement daily and an upper line of 15-min Bollinger Band.
  • The above mentioned critical $5,350 barrier is strengthened by a confluence of previous week high and a previous day high.

Support levels 

  • Below the current price, the first support area is registered on approach to $5,150 (Midline of 4-hour Bollinger Band and the lowers level of previous 4-hour period).
  • It is followed by critical $5,000, strengthened by a confluence of strong technical indicators including 23.8% Fibo retracement weekly a Pivot Point 1D Support2) 

BTC/USD 1D 

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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